The European Investment Bank (EIB) Group, together with the Instituto de Crédito Oficial (ICO), has invested in Prado XII, a residential mortgage-backed securitisation fund originated by Unión de Créditos Inmobiliarios (UCI). The operation aims to support energy efficiency improvements in housing across Spain and Portugal, including the renovation of existing homes and the acquisition of near-zero energy consumption properties.
The EIB Group, which includes the European Investment Bank and the European Investment Fund (EIF), is contributing a total of €225 million to the transaction, with €150 million from the EIB and €75 million from the EIF. In addition, ICO is investing €100 million. The combined investment is expected to help UCI expand its capacity to issue new sustainable loans for homeowners and housing associations focused on energy-efficient renovations.
The funding will primarily support the renovation of existing housing stock, while also enabling financing for the purchase of energy-efficient homes. The initiative is aligned with the European Union’s climate goals, including the Renovation Wave strategy, and supports broader climate action priorities outlined in the EIB Group’s strategic roadmap for 2024–2027 and its Climate Bank objectives for 2026–2030.
Prado XII is structured as a residential mortgage-backed securitisation that meets EU standards for simplicity, transparency, and standardisation. It complies with key regulatory frameworks, including the Securitisation Regulation, Capital Requirements Regulation, and liquidity coverage requirements, making it attractive and reliable for institutional investors.
The transaction is a true-sale securitisation involving a €650 million portfolio of performing mortgages. The EIB Group and ICO are purchasing part of the senior tranche, while UCI retains the mezzanine and junior tranches. The structure includes risk protection mechanisms such as cash reserves and amortisation features designed to safeguard investors and maintain financial stability over time.
This marks the second joint securitisation operation between the EIB Group, ICO, and UCI, strengthening their ongoing collaboration to promote sustainable housing finance. UCI will use the mobilised capital to expand lending for energy renovation projects and support broader efforts to improve housing sustainability in Southern Europe.
The EIB Group highlighted that the initiative supports both climate mitigation and the development of more energy-efficient housing systems, while also helping to mobilise private investment. It forms part of the EU’s broader strategy to decarbonise housing stock and accelerate green investment across member states, particularly in regions vulnerable to climate change impacts such as the Iberian Peninsula.
